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Monday, Jan 30, 2023
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PennyMac Reports Lower Revenue, Earnings

PennyMac Mortgage Investment Trust reported much lower fourth-quarter revenue and income, citing the slowdown in home price gains as the reason. The Moorpark finance company, which specializes in non-performing and troubled loans, reported net income of $26.5 million (34 cents a share) for the quarter, compared to $52.6 million (69 cents) for the same quarter a year earlier. Revenue declined 50 percent to $53.1 million. No analysts follow the company. For the full year, PennyMac reported net income of $195 million ($2.47 a share) compared to $200 million ($2.96) for the previous year. Revenue decreased 12 percent to $357 million. In a statement, the company said home prices during the fourth quarter were lower than it previously forecast, which translated to reduced revenue from the sale of homes with distressed loans. However, the company’s investments continue to generate cash flows to fund its quarterly dividends, which are 61 cents a share for the fourth quarter. “In recent weeks we have entered into significant new investments in non-performing loans and excess servicing spread that we expect will deliver strong contributions to PennyMac’s returns going forward,” Chief Executive Stanford Kurland said in a statement. Shares closed down 34 cents, or 1.5 percent, to $22.65 on the New York Stock Exchange.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.
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